How to sell a car that i have leased for 5 year?

I have FAW V2 Islamabad registered. Its a bank leased car, now i want to buy a small car. How to sell it now? What's the procedure? What are pros and cons. What possible frauds am i looking at? and is this normal to sell bank leased cars? Do you have any prior experience?

You bought a car on lease which has low resale. You should contact bank to find out how you can sell your car.
Your best bet is to find someone, who will pay you and trust you enough to keep paying installments in your name.

if not then you will have to buy it out first or find a buyer with a bank to buy out the loan from your bank. In most cases like this, you get hit with depreciation of the asset but your loan still stands.

This puts you in huge negative if the asset depreciated like a falling rock e.g. if the car is now worth only 500K and your loan is more than 500K you pay the difference if its bought out.

if not then you will have to buy it out first or find a buyer with a bank to buy out the loan from your bank. In most cases like this, you get hit with depreciation of the asset but your loan still stands.

This puts you in huge negative if the asset depreciated like a falling rock e.g. if the car is now worth only 500K and your loan is more than 500K you pay the difference if its bought out.

Can you explain this? What would happen if the buyer stops paying? Where does the legal agreement stands?

You are servicing the loan under your name with the bank/creditor - whatever agreement is done is outside the boundary of the loan agreement - The buyer pays installment under your name in goodwill and whatever agreement you made. Read the terms and conditions that your bank provided.

Once they (your new buyer) stop paying for any reason you are in trouble as you dont have possession of the collateral (the car) - you have to service the payments yourself even if you keep fighting it in court with the other party who signed your "payment agreement".

Can you explain this? What would happen if the buyer stops paying? Where does the legal agreement stands?

You would have recovered all your money, car would get repossessed by bank but will leave a mark on your credit history... Best thing to do is sell to someone you know who him self cannot get a car leased